The initial public offer of CMR Green Technologies Ltd, a non-ferrous metal recycler, was fully subscribed on the first day of bidding. The public subscription window for the CMR Green IPO will remain open till Friday, June 5. The company has set a price band of Rs 182-192 per equity share.
Thursday, June 4, is the second day of bidding for the public issue of CMR Green Technologies. Meanwhile, the shares of the company are commanding a strong GMP in the grey market, signalling strong investor interest.
Created with AI. Errors are possibleAccording to several websites that track grey market activities, the IPO is commanding a grey market premium (GMP) of around 31.77 per cent, indicating a potential listing price of about Rs 252 per share against the upper issue price of Rs 192.
CMR Green Technologies Subscription Day 1 details
The Rs 630.62-crore IPO received bids for 5,66,05,068 shares against 2,30,43,930 shares on offer, translating into 2.46 times subscription, according to NSE data.
The category for non-institutional investors fetched 5.67 times subscription, while the quota for retail individual investors (RIIs) subscribed 2.45 times. The portion for qualified institutional buyers (QIBs) attracted 3 per cent bidding.
On Tuesday, CMR Green Technologies said it has garnered Rs 188.44 crore from anchor investors.
CMR Green Technologies IPO Details
The IPO is entirely an offer for sale of up to 3.28 crore equity shares by promoters and an investor selling shareholder.
CMR Green Technologies, a non-ferrous metal recycler, on Tuesday said it has garnered Rs 188.44 crore from anchor investors ahead of its initial public offering (IPO).
According to the circular, the company allotted 98.14 lakh equity shares to 18 funds at Rs 192 per share, the upper end of the IPO price band.
Domestic mutual funds accounted for the largest share of the anchor book, receiving 61.31 lakh shares, or 62.47 per cent of the anchor allocation, through 10 schemes of seven fund houses.
CMR Green Technologies IPO Review: Apply or not?
Brokerage firm SBI Securities has recommended the investors to subscribe to the CMR Green Technologies IPO at the cut-off price.
The brokerage noted that the company is in the leadership position in the non-ferrous metal recycling industry, the largest player (by capacity) in the Domestic Aluminium recycling industry and favourable long-term sector prospects. “The company uses derivative financial instruments such as forward exchange contracts to hedge risks associated with these foreign currency and commodity price fluctuations,” the brokerage stated.
Further, the brokerage said, “The company is well placed to capitalize on strong sector tailwinds, with India Recycled Aluminium Market – Sales volume (mnt) and India Recycled Aluminium Market (USD bn) to grow at a CAGR of 11.2%/13.2% from FY26E-FY30E. At the upper price band of Rs 192, the issue is valued at a P/E of 27.1x/20.3x based on FY25 and annualized 9MFY26 earnings respectively, on a post-issue basis.”
“We recommend investors to SUBSCRIBE to the issue at the cut-off price,” SBI Securities said.
CMR Green Technologies IPO: Key risk factors
SBI Securities has also highlighted the risk factors for CMR Green Technologies. These are as follows:
Dependence on key products
The brokerage said the company derives a substantial portion of its revenue from the sale of Liquid Aluminium Alloys and Aluminium Alloy Ingots, which contributed a combined ~81.9% to the CGTL’s revenue (excluding incentives) during 9MFY26. “Thus, any loss of sales due to reduction in demand for these products could adversely affect the company’s business,” it stated.
As of 9M FY26, SBI Securities said the company’s top 5/top 3 customers contributed ~32.5%/20.9% to the total revenue. “Thus, the loss of any of these customers may adversely affect the company’s business,” it added.
The company depends on third-party suppliers for the supply of scraps required for operations and sources majority of the total scrap requirement through imports. As of 9M FY26, the share of raw material imports and traded goods from the US stood at 49.8%. Hence, any restrictions, either from the central government or state government of India, or from countries which the company imports from, may adversely affect its business, the brokerage firm said.
Sharp decrease in Net Worth
SBI Securities said the company recorded a sharp decrease in Net Worth from Rs 1,195.2 cr in FY23 to Rs 317.5 cr in FY24 on account of write-off of the exceptional item (write-off of goodwill) to the tune of Rs 1,239.6 cr in FY24. “However, the company’s net worth increased from Rs 317.5 cr in FY24 to Rs 458.4 cr in FY25. The company may face similar kind of situation in the future and may encounter unforeseen expenses, difficulties, complications, delays and other unknown events. In case of further erosion of Net Worth in the future, investors could lose their investments and the market price of the equity shares could suffer,” it added.
About CMR Green Technologies
Faridabad-based CMR Green Technologies processes and manufactures aluminium alloys (ingot and liquid), zinc alloys and furnace-ready scrap of stainless steel, copper, brass, lead and magnesium, among others.
The company operates 13 recycling facilities across India and has built a procurement network spanning domestic markets as well as Asia, Africa, the Middle East, Europe and the Americas. Its customer base primarily comprises automotive original equipment manufacturers (OEMs) and Tier-I suppliers.
CMR Green Technologies IPO Listing Date
Shares of CMR Green Technologies are expected to be listed on the stock exchanges on June 10.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
